Name and describe in detail the four primary tools of monetary policy that the Federal Reserve has at their disposal (hint: three of these are traditional tools, and one was added by Chairman Ben Bernanke in the wake of the 2008 crisis). What mechanism is primarily in use today, and how does it work?

Answer rating: 100% (QA)

The Federal Reserve utilizes four primary tools to conduct monetary policy and influence economic activity 1 Open Market Operations OMO This is the mo... View the full answer